CME live cattle seen opening lower, hogs mixed

Mon Feb 10, 2014 9:55am EST

Feb 10 (Reuters) - CME live cattle were expected to open
lower on Monday following Friday's drop in cash and wholesale
beef prices, traders said.
    * On Friday, a light number of cattle in Texas and Kansas
moved at $140 to $141 per hundredweight (cwt), compared to $144
to $145 the week before, feedlot sources said.
    * Last week, cash cattle in Nebraska sold at mostly $141
versus $146 the previous week, they said.
    * Friday afternoon's wholesale choice beef price was $210.77
per cwt, down $2.74 from Thursday. Select cuts dropped $3,12 to
$209.19, according to U.S. Department of Agriculture  data.
    * USDA's monthly export data on Friday showed beef exports
in December at 227.9 million lbs, up 5.5 percent from November
and up 15.9 percent from December 2012.  
    * Monday is the first notice day for cattle deliveries
against the February live cattle contract that will expire on
Feb. 28.
                            
    LIVE CATTLE - Called 0.200 cent to 0.300 cent per lb lower.
    * Packers are expected to reduce slaughter rates this week
to stabilize their falling operating margins and sliding
wholesale beef prices, a trader said.
    * CME live cattle futures remain at a discount to last
week's lower cash prices, which could minimize potential market
losses, he said.
    * There is no word whether Cargill Inc's beef
processing plant in Schuyler, Nebraska that was idled by fire on
Friday will resume operations on Monday. 
                         
    FEEDER CATTLE - Narrowly mixed.
    * CME feeder cattle futures may draw support from weak corn
prices while pressured by possible selling in the live cattle
market.
    
    * LEAN HOGS - Called up 0.200 cent to down 0.200 cent per
lb.
    * Friday's mixed, rather than lower cash prices, and higher
wholesale pork values may underpin the February CME hog
contract, traders said.
   * On Monday, cash hog prices in the Midwest traded steady as
packers buy supplies for this week's production, hog dealers
said. A large East Coast pork processor is offline due to
maintenance, they said.  
   * Futures' premium to CME's hog index at 83.81 cents and
profit taking are negative market factors, they said.
   * December pork exports were at 454.6 million lbs, up 0.3
percent from the previous month and up 6.5 percent from a year
ago, according to USDA data.
FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.